Last quarter, WSM disappointed, basically because Pottery Barn missed estimates on same-stores-sale growth. It might be over simplifying, certainly the stock is not “cheap”, but on the call if you listened (I did) there was a fire at factory in Vietnam. This caused a delay in shipments that hurt sales. The rest of the franchises performed quite well.
Basically, I’m banking on:
- Pottery Barn returning to form
- A slowly strengthening consumer spending more
- A fill on the chart (which looks good) back to the highs of the year
I will look to spread if buyers emerge into the close today to mitigate risk. Good luck to all.